Yoon Ho-jung, the Minister of the Interior and Safety, is accelerating efforts to promote the social economy. Following the establishment of legislation and a comprehensive government plan, he is expanding his outreach to local governments and the international community. This initiative aims to solidify the social economy as a key policy focus for the Ministry.
In June, the government unveiled a 'Comprehensive Plan for the Development of the Social Economy,' consolidating policies previously scattered across social enterprises, cooperatives, community businesses, and self-sustaining enterprises into a unified framework. The plan identifies care, housing, energy, and rural development as priority areas while also emphasizing the need to strengthen financial support, market access, and local economic connections.
As the implementation of the Basic Law on Social Economy approaches in March 2027, preparations are intensifying. Minister Yoon is discussing policy execution strategies with local governments and expanding connections with social economy organizations. The upcoming Social Economy Expo in Goyang, scheduled for November, is expected to serve as a platform uniting government, local authorities, public institutions, and private organizations.
Yoon's initiatives have also reached an international audience. Recently, he attended a high-level UN meeting on social economy in New York, where he presented South Korea's policy direction. He highlighted local solutions, such as the 'Sunlight Income Village,' which returns profits from locally produced renewable energy to residents. Collaborations in the social economy sector with Spain and Senegal are also being pursued.
Notably, the scope of the social economy is evolving. Previously focused on supporting individual organizations like social enterprises and cooperatives, the approach is now shifting towards creating an ecosystem that connects finance, market access, and local economies. The central government is tasked with establishing frameworks, while local governments are encouraged to develop models suited to their unique characteristics.
The growing attention on the social economy stems from its potential to address challenges such as population decline, aging, care gaps, and regional extinction—issues that cannot be resolved solely through government funding or market profitability. The social economy aims to bridge these gaps by fostering collaboration among local residents, businesses, and governments to generate economic value.
However, institutionalization does not guarantee success. A sustainable economic ecosystem cannot be built on the premise of social value alone. If financial support is provided, it should lead to business growth; if market access is granted, it should result in increased sales and employment; and if local initiatives are pursued, they should yield tangible benefits for residents. The coexistence of social value and economic sustainability is essential.
Ultimately, the key lies in outcomes. The sustainability of projects after government support ends, and their ability to create new income and jobs in local communities, should be the benchmarks for the competitiveness of the social economy. It is time to critically assess the results in relation to the policy's intentions.
Local governments play a crucial role in this process. Each region has distinct industrial structures, populations, and welfare needs. Issues such as energy and agriculture in rural areas, and care and housing in urban settings, can be effectively linked to the social economy. Rather than relying on uniform support from the central government, regions must create models that address their specific needs to ensure longevity.
In this context, Minister Yoon's recent actions can be seen as a process of broadening the stage for the social economy. By establishing legal frameworks and comprehensive plans, engaging with local governments, and connecting with the international community, he is attempting to unify previously fragmented policies and organizations into a cohesive ecosystem.
The social economy is now crossing the threshold of institutionalization and entering the realm of execution. The central government cannot and should not do everything. It must create the framework, while local governments, businesses, and communities develop their own solutions within it. Ultimately, this is the direction that Yoon Ho-jung's expansive initiatives should take.
* This article has been translated by AI.
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